Port Pirie Regional Council

Transcription

1 Port Pirie Regional Council FINANCIAL HARDSHIP POLICY Type Category Responsible Officer Governance Finance & Information Director Finance & Information First Issued / Adopted 24 June 2015 Review Period Last Reviewed Minutes Reference 2 Years N/A OM172/15 Next Review Date December 2017 Applicable Legislation Local Government Act 1999 Related Documents Public Consultation Required Rates Policy Debt Collection Policy Financial Hardship (CWMS) Policy Complaints Policy No File Reference Purpose To identify rate and other sundry debtors who are experiencing payment difficulties due to hardship, To assist those debtors to better manage their bills on an ongoing basis. 1. PURPOSE Port Pirie Regional Council is committed to assisting debtors who are experiencing financial hardship, to manage their payments in a manner that best suits the debtor, to clear their outstanding debt in a planned and efficient manner. The purpose of this policy is to identify rate and other sundry debtors who are experiencing payment difficulties due to hardship, and assist those debtors to better manage their bills on an ongoing basis. Port Pirie Regional Council - Policy Manual (Governance) June

2 1. PURPOSE (Cont d) This policy sets out: processes to identify debtors experiencing payment difficulties due to hardship, including identification by Council, self-identification by a debtor, identification by an accredited financial counsellor or welfare agency, and an outline of a range of processes or programs that Council will use or apply, to assist debtors who have been identified as experiencing payment difficulties. Council s CWMS Hardship Policy should be used for the consideration and application of CWMS debtors, in accordance with the Water Industry Act. 2. DEFINITIONS AND INTERPRETATION In this policy: Council means Port Pirie Regional Council. debtor means a person who owes amounts for rates, fees, charges or other amounts due and payable to the Council. accredited financial counsellor means a person who holds a Diploma of Community Services (Financial Counselling), and who has worked at least 12 months as a financial counsellor under the supervision of the South Australian Financial Counsellors Association. financial hardship means a circumstance of experiencing a lack of financial means, that may be either ongoing or temporary, but does not include circumstances where a person chooses not to meet a liability for an unpaid debt. hardship debtor means a debtor who has been identified under, accepted into, or is eligible for assistance under Council s hardship program. hardship program means an agreement between Council and a hardship debtor for payment of outstanding sums due for retail services. policy means this Financial Hardship Policy. 3. IDENTIFYING DEBTORS EXPERIENCING FINANCIAL HARDSHIP A debtor experiencing financial hardship is someone who is identified by themselves, by Council, by an accredited financial counsellor, or by a welfare agency as having the intention, but not the financial capacity, to make required payments in accordance with Council s payment terms. There are two types of financial hardship: ongoing and temporary. Depending on the type of hardship being experienced, hardship debtors will have different needs and will require different solutions. Debtors who are identified as experiencing ongoing hardship are generally those on low or fixed incomes. These debtors may require ongoing assistance. Port Pirie Regional Council - Policy Manual (Governance) June

3 3. IDENTIFYING DEBTORS EXPERIENCING FINANCIAL HARDSHIP (Cont d) Debtors who may be identified as experiencing temporary hardship are those who have experienced a short-term change in circumstances, such as serious illness, disability or death in the family, loss or change in income, separation, divorce or other family crisis, a loss arising from an accident, or some other temporary financial difficulty. These debtors generally require flexibility and temporary assistance, such as an extension of time to pay or an alternative payment arrangement. The extent of hardship will be determined by either Council s assessment process or by an external body, such as an accredited financial counsellor. Where Council assesses a debtor s eligibility for hardship assistance, Council will consider indicators including (but not limited to) whether: the debtor is on a Centrelink income and holds a Pensioner Concession Card or holds a Centrelink Low Income Health Care Card; the debtor is eligible for a South Australian Government concession; the debtor has been referred by an accredited financial counsellor or welfare agency; the debtor advises they have previously applied for emergency relief (irrespective of whether or not their application was successful); the debtor s payment history indicates that they have had difficulty meeting their payment obligations in the past; the debtor, through self assessment, has identified their position regarding their ability to pay. 4. ASSISTING DEBTORS WHO ARE EXPERIENCING FINANCIAL HARDSHIP Council will inform a debtor of this policy where it appears to Council that nonpayment of a debt is due to the debtor experiencing payment difficulties due to hardship. Where a debtor has been identified as experiencing financial hardship, Council will offer the debtor, as soon as is reasonably practicable, flexible and frequent payment options that have regard to the hardship debtor s usage, capacity to pay and current financial situation. These options will include the following: a payment plan, Centrelink s Centrepay service, or other arrangement, under which the debtor is given more time to pay a bill or to pay in arrears, recognising that some debtors have a short-term financial hardship issue that may be resolved in the near to medium-term, where others may require a different type of assistance for ongoing financial issues. Council will engage in discussion with the hardship debtor to determine a realistic payment option in line with the debtor s capacity to pay. Council will work with a hardship debtor s accredited financial counsellor to determine the payment arrangement and instalment amount that best suits the debtor and their individual circumstances. Port Pirie Regional Council - Policy Manual (Governance) June

4 4. ASSISTING DEBTORS WHO ARE EXPERIENCING FINANCIAL HARDSHIP (Cont d) Where a hardship debtor s circumstances change, Council will work with the debtor, and their accredited financial counsellor, to re-negotiate their payment arrangement. Council will also offer the hardship debtor: where appropriate, information about the right to have a debt redirected to a third person, as long as that third person consents in writing to that redirection information about, and referral to, Commonwealth and South Australian Government concessions, rebates, grants and assistance programs information about, and referral to, accredited financial and other relevant counselling and support services, particularly where a debtor is experiencing ongoing financial hardship. Where a hardship debtor requests information or a redirection of their bills, Council will provide that information or redirection free of charge. Council will explain to the hardship debtor how and when the debtor will be returned to regular billing cycles (and collection), after they have successfully completed the hardship program. Council will also explain to the hardship debtor that they will be removed from its hardship program, and be returned to Council s standard collection cycles, including debt recovery, should they cease to make payments according to the agreed payment arrangement or fail to contact Council for a period of greater than 90 days. Council will not take any action to remove a debtor from its hardship program until Council has sent the debtor a written notice, allowing them 10 working days from the date of the notice to contact Council to re-negotiate their re-entry into the program. 5. PAYMENT PLANS Council s payment plan for a hardship debtor will be established having regard to: the debtor s capacity to pay and current financial situation any arrears owing by the debtor, and the debtor s likely debt needs over the following 12 month period. The payment plan will also include an offer for the hardship debtor to pay their debts in advance or in arrears by instalment payments at a frequency agreed with the debtor (e.g. weekly, fortnightly, monthly or as otherwise agreed with the debtor). Where a payment plan is offered to a hardship debtor, Council will inform the debtor in writing, within 10 business days of an agreement being reached, of: the duration of the plan the amount of each instalment payable under the plan, the frequency of instalments and the date by which each instalment must be paid if the debtor is in arrears the number of instalments to pay the arrears, and if the debtor is to pay in advance the basis on which instalments are calculated. Port Pirie Regional Council - Policy Manual (Governance) June

5 5. PAYMENT PLANS Council will not waive any fees for late payment of a bill for a hardship debtor. Where a hardship debtor is seeking assistance in accordance with this policy, but has failed to fulfil their obligations under an existing hardship arrangement, Council will require them to sign up for direct debit deductions or Centrepay (where available). 6. DEBT RECOVERY Council will suspend debt recovery processes while negotiating a suitable payment arrangement with a hardship debtor. Council will not engage in legal action or commence proceedings for the recovery of a debt of a hardship debtor if: the debtor has agreed to a payment arrangement and continues to adhere to the terms of that arrangement, or Council have failed to comply with the requirements of this policy. 7. RIGHTS OF DEBTORS EXPERIENCING FINANCIAL HARDSHIP Every debtor experiencing financial hardship has the right to: Be treated respectfully on a case-by-case basis, and have their circumstances kept confidential. Receive information about alternative payment arrangements, this policy, and government concessions, rebates, grants and assistance programs. Negotiate an amount they can afford to pay on a payment plan or other payment arrangement. Consider various payment methods, and receive written confirmation of the agreed payment arrangement within 10 business days. Renegotiate their payment arrangement if there is a change in their circumstances. Be shielded from legal action and additional debt recovery costs, whilst they continue to make payments according to an agreed payment arrangement. 8. GENERAL PROVISIONS Council will ensure debtors have equitable access to this policy, and that this policy is applied consistently. Council will ensure appropriate training of staff dealing with debtors in hardship to enable them to treat them with respect and without making value judgements. Training will also assist staff in the early identification of hardship debtors, with establishing payment plans based on a hardship debtor s capacity to pay, and include processes for referral to an accredited financial counsellor or welfare agency for assistance. Port Pirie Regional Council - Policy Manual (Governance) June

6 8. GENERAL PROVISIONS (Cont d) This policy does not limit or prevent Council from waiving any fee, charge or amount of arrears for debtors who are experiencing financial hardship. Any information disclosed by a debtor is confidential and will not be used for any purpose other than the assessment of an application for assistance. Council s Complaints Policy is available at Council s website: 9. FURTHER INFORMATION This policy will be available for inspection at the Council offices listed below during ordinary business hours and available to be downloaded, free of charge, from Council s internet site: Port Pirie Council Administration Centre, 115 Ellen Street, Port Pirie Crystal Brook Rural Office, Bowman Street, Crystal Brook. Copies will be provided to interested parties upon request, and upon payment of a fee in accordance with Council s Schedule of Fees and Charges. Port Pirie Regional Council - Policy Manual (Governance) June